Estonian officials condemn OTP bank's plan to buy Luminor due to its Russia operations

Estonian Finance Minister Jürgen Ligi (Reform Party) stated that Hungarian OTP Bank's ongoing operations in Russia make its bid to buy Estonian bank Luminor unacceptable. Ligi noted that Estonia can influence the sale through licensing, but since Luminor is supervised by the European Central Bank, Estonia does not have the final word. He added that leaving Russia is difficult for OTP; some firms have simply given away their assets for symbolic sums.

Interior Minister Igor Taro (Eesti 200) believes the deal would damage Estonia's security more than strengthen it. He argued that any activity in Russia creates additional opportunities for someone, and each Estonian must decide which bank to use.

MEP Urmas Paet (Reform Party) criticized former Financial Inspector Kilvar Kessler for saying OTP's Russia presence is not unusual. Paet noted that most European banks have left Russia, and reminded that OTP was recently placed on Ukraine's list of international sponsors of war for supporting Russia's war efforts.

OTP Bank has agreed to acquire Luminor, the third-largest banking group in the Baltics. The deal marks OTP's entry into the Baltic market, expanding its presence to 14 countries. The bank's assets would increase by about 13%, and its eurozone share from 42% to 50%. Completion depends on regulatory approvals.

Defense Minister Hanno Pevkur declined to comment, and Foreign Minister Margus Tsahkna did not respond to calls.